INVESMENTS

BY :
GROUP 2

MEMBERS :
ACHMAD GUGI LEO A.
ADELLA SHINTA
ANNISHA SEFTIANI
ARIS PON PASCAL
DENDY DHARMAWAN
MIRA JULIANA
 What is an Investment?
Investment is any vehicle into which funds can be
placed with the expectation that it will generate
positive income and/or that its value will be
preserved or increased
Return is the reward for owning an investment
Current income
Increase in value

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 Types of Investments
Securities or Property
Securities: stocks, bonds, options
Real Property: land, buildings
Tangible Personal Property: gold,
artwork, antiques

Direct or Indirect
Direct: investor directly acquires a claim
Indirect: investor owns part of a portfolio

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 Types of Investments
Debt, Equity or Derivative Securities
Debt: investor lends funds in exchange for interest income
and repayment of loan in future (bonds)
Equity: represents ongoing ownership in a business or
property (common stocks)
Derivative Securities: neither debt nor equity; derive value
from an underlying asset (options)
Low Risk or High Risk
Risk: chance that actual investment returns will differ from
those expected

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 Types of Investments
Short-Term or Long-Term
Short-Term: mature within one year
Long-Term: maturities of longer than a year

Domestic or Foreign
Domestic: U.S.-based companies
Foreign: overseas-based companies

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STOCK (SAHAM)
WHAT IS STOCK?
Stock is simply having a small piece of
ownership in a company. Microsoft is an
example of a company you can purchase stock
in. There are 3 factors to consider when
buying stocks and selling stocks.
 CATEGORIES OF STOCK
Growth stocks: Shares of fast-growing, higher-
risk companies. They offer a higher chance of
higher returns and a higher chance of
bankruptcy.

Tech stocks: Shares of technology companies.

Like growth stocks, they are generally riskier
than other types of companies, but they
also offer a chance at very high returns.
 Small-cap, mid-cap and large-cap
stocks: Stocks from small, mid-size and large
companies. The "cap" is short
for capitalization, which is simply the number
of shares outstanding times the current price
per share. It's important to note that a
company's stock can fall into more than one
category. Large-cap stocks can be blue-chip
stocks, growth stocks or income stocks, for
example. Small-cap stocks can be growth
stocks, income stocks or tech stocks.
 ADVANTAGE OF STOCK
The stock rate is bound to rise and fall on a daily basis,
but if a person looks at his previous records, stocks
have proven to be essentially beneficial for its
investors.

The best part about stocks is that most of them are

liquid. This implies that they readily can be sold or
bought at a fair price.

As investors, if you bought stocks, you can get a break

to participate in the growth of the company. Moreover,
if you buy stocks of a particular company, you are
entitled to the profits made by them since you are a
partial owner.
 The potential loss from stock bought with cash is quite
limited to the overall amount of the initial investment.
It is better than considerably that of some leveraged
transactions, where maximum loss is observed and
exceeds the overall funds invested.

Stocks have the potential of delivering huge amounts

of gains compared to certificate of deposit, bonds or
other alternatives.

It also offers 2 ways for their owners to benefit, with

dividends and by capital gains.
 DISADVANTAGE OF STOCK
Sometimes, stock values change for no apparent
reason that can be quite frustrating for the investor
whos trying to anticipate the behavior of the stock
based on the actual performance of their company.

Prices of stocks tend to be volatile as well. Prices can

be rising, erratic and declining fast. Such declines
sometimes cause investors to sell and panic, which
actually serves only to lock in their losses.

Investors in a certain company might not know all that

there is to know about their company. Due to this
insufficient information, making an investment
decision is sometimes hard.
 While shareholders are company owners, they
dont enjoy all of the privileges and rights that
the owners of privately held companies have. For
an instance, they cant normally brag in and ask
for the companys current books and details.

Stockholders are also the last one to get paid

since the company should pay first their
employees, creditors and suppliers. They have to
pay their taxes as well.